Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Bengang Steel Plates Co., Ltd. Report for the First Quarter of 2018 April 2018 1 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Chapter I Important Notice The Board of Directors, the Supervisory Committee and the Directors, members of the Supervisory Committee and senior management of the Company guarantee that there are no misrepresentations or misleading statements, or material omission in this report, and individually and collectively accept full responsibility for the authenticity, accuracy and integrity of the information contained in this report. All the members of the Board of Directors attended the board meeting on which this report was examined. Wang Shu, Chairman of the Company, Han Ge, the principal in charge of the accounting, and Wang Shaoyu, Chief of Accounting Affairs, make the pledge for the authenticity, accuracy and integrity of the attached financial statements. 2 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. II Basic Information of the Company 1 Summary of accounting data and financial index Whether the Company make retroactive adjustment or restatement of the accounting data of the previous years □ Yes √ No Jan.-Mar. 2018 Jan.-Mar. 2017 Changes (+/-) Operating income(RMB) 11,641,518,226.15 11,132,407,692.65 4.57% Net profit attributable to the shareholders 350,629,492.24 302,653,287.07 15.85% of the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 347,300,210.06 295,684,784.12 17.46% listed company(RMB) Net Cash flows generated by business -8,871,507,868.81 -3,422,732,831.24 208.17% operation(RMB) Basic earnings per share(RMB/Share) 0.090 0.097 -7.22% Diluted earnings per share(RMB/Share) 0.090 0.097 -7.22% Weighted average net assets yield (%) 2.13% 2.30% -0.17% 31 Mar. 2018 31 Mar. 2017 Changes (+/-) Gross assets(RMB) 56,754,968,274.94 62,998,143,513.02 -9.91% Net assets attributable to shareholders of 18,640,829,795.37 14,315,588,729.00 30.21% the listed company(RMB) Items and Amount of the non-recurring gains and losses √ Applicable □ Not applicable Unit:Yuan Items Jan.-Mar. 2018 Notes Profit or loss from investment or assets entrusted to others 3,493,150.68 Profit or loss from debt restructuring 945,892.23 Less: Impact of income tax 1,109,760.73 Total 3,329,282.18 -- For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profit and loss items as illustrated in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” which have been defined as recurring profits and losses, it is necessary to explain the reason. □ Applicable √ Not applicable None of Non-recurring profit and loss items recognized as recurring profit and loss items as defined by “the Explanatory 3 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” in the report period. 2 Number of total shareholders and shareholdings by Top 10 shareholders at the end of the period. (1) Number of holders of ordinary shares and preferred shares with restored voting right and Top 10 shareholders Unit:Share The total number of preferred Total number of common shareholders whose voting shareholders at the end of the 68,592 rights has been restored at end 0 reporting period of the reporting period (if any) Shareholding by Top 10 shareholders Amount of Number of share pledged/frozen Name of the Nature of Proportion of Quantity of restricted shares shareholder shareholder shares held shares State of share Quantity held Benxi Steel & Iron State-owned Pledged 1,483,095,133 58.95% 2,284,411,202 (Group) Co., Ltd. legal person Frozen 45,000,000 Liaoning Provincial Transportation State-owned 4.77% 184,842,883 184,842,883 Investment Group legal person Co., Ltd. CCB Principal Asset Management – ICBC – CR Trust – CR Trust Xing Others 4.77% 184,842,883 184,842,883 Sheng No. 5 Collective Fund Trust Plan Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Feng Others 4.77% 184,842,883 184,842,883 Fund Feng Qing No. 229 Asset Management Plan China Life AMP Fund– ICBC – Others 4.77% 184,842,883 184,842,883 China Life AMP – Hua Xin Trust 4 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Targeted Additional Shares Issuance No. 10 Asset Management Plan VANGUARD EMERGING Overseas legal 0.21% 8,157,311 MARKETS STOCK person INDEX FUND Domestic Chen Jinhong 0.17% 6,517,700 natural person Domestic Lyu Ruijun 0.13% 5,123,100 natural person FIRST TRUST EMERGING MARKETS Overseas legal 0.13% 4,871,043 SMALL CAP person ALPHADEX FUND VANGUARD TOTAL Overseas legal INTERNATIONAL 0.12% 4,606,141 person STOCK INDEX FUND Shareholding of top 10 shareholders of unrestricted shares Category of shares Number of non-restricted common shares held at the Name of the shareholder Category of period-end Quantity shares Common shares Benxi Steel & Iron (Group) Co., Ltd. 2,284,411,202 2,284,411,202 in RMB Foreign shares VANGUARD EMERGING placed in 8,157,311 8,157,311 MARKETS STOCK INDEX FUND domestic exchange Foreign shares placed in Chen Jinhong 6,517,700 6,517,700 domestic exchange Foreign shares placed in Lyu Ruijun 5,123,100 5,123,100 domestic exchange 5 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Foreign shares FIRST TRUST EMERGING placed in MARKETS SMALL CAP 4,871,043 4,871,043 domestic ALPHADEX FUND exchange Foreign shares VANGUARD TOTAL placed in INTERNATIONAL STOCK INDEX 4,606,141 4,606,141 domestic FUND exchange Foreign shares placed in Yu Xiaofan 4,002,707 4,002,707 domestic exchange Common shares Liu Hongqing 3,490,000 3,490,000 in RMB Common shares Wu Zhanglin 3,395,200 3,395,200 in RMB Foreign shares Haitong International Securities placed in 3,161,109 3,161,109 Company Limited-Account Client domestic exchange Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of the other shareholders among the top 10 shareholders, neither being regarded as action-in-concert parties by the Information Disclosure Regulations for Change of Related-parties or acting-in-concert Shareholding in listed companies. The Company is not aware of any relationship among the parties among the above-mentioned other shareholders, neither being regarded as action-in-concert parties by the Information shareholders Disclosure Regulations for Change of Shareholding in listed companies. The Company is not aware of any relationship among the top 10 shareholders, neither being regarded as action-in-concert parties by the Information Disclosure Regulations for Change of Shareholding in listed companies. Benxi Steel & Iron (Group) Co., Ltd. holds 2,034,411,202 shares of the company through an ordinary securities account, and holds 250,000,000 shares through the investor's credit Shareholders among the top 10 securities account, therefore, it holds a total of 2,284,411,202 shares. Liu Hongqing holds participating in Securities lending 3,490,000 shares of the company through an investor's credit securities account, and Wu and borrowing business(if any) Zhanglin holds 3,395,200 shares of the company through an investor's credit securities account. Whether top ten common shareholders or top ten common shareholders with unrestricted shares carried out any buy-back agreement dealing in the reporting period. □ Yes √ No Top ten common shareholders or top ten common shareholders with unrestricted shares did not carry out buy-back agreement dealing in the reporting period. . 6 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. (2) Number of total preferred shareholders and preferred shares hold by Top 10 preferred shareholders □ Applicable √ Not applicable 7 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. III Important Events 1 Major changes in main accounting statement items and financial indicators within the reporting period, as well as reasons for the changes. √ Applicable □ Not applicable Significant changes and reasons in major accounting data, financial indicators which changed over 30% compared to the consolidated financial statement at the end of 2017 Increase / 1. Financial Position Statement items Reasons Decrease Cash at bank and on hand -35% Due to repayment of the arrears in the current period Other current assets -72% Due to the redeem of financial products Construction in progress -37% Due to the increase of construction materials usage Due to the increase of the solution pay of notes Notes payable -67% payable at maturity Advance from customers -31% Due to the decrease of production Due to the decrease of tax payable at the end of this Tax payable -73% period Due to the decrease of provision of corporate bond Interests payable -69% interest Capital reserves 35% Due to premium of targeted additional shares issuance Due to the decrease of payment of safety production Special reserves 1447% cost Undistributed profits 32% Due to the increase of net profit Significant changes and reasons in major accounting data, financial indicators which changed over 30% compared to the consolidated financial statement of the first quarter of 2017 Increase / 2. Income Statement items Reasons Decrease Due to the increase of employee benefits and repair General and administrative expenses 38% costs Financial expenses -133% Due to the increase of exchange gains Income on investment 60% Due to the increase of income on financial products Due to the reclassification of government subsidy into Non-operating income -83% other income Non-operating expenses -100% Due to non-occurrence of disposal of fixed assets 8 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Income tax expenses -90% Due to the decrease of deferred income tax Profit or loss of non-controlling -88% Due to the decrease of profit of holding subsidiaries shareholders Increase / 3. Cash flow items Reasons Decrease Tax rebate received 80% Due to the increase of tax rebate received Due to the increase of repayment of the arrears in the Cash paid for goods and services 61% current period Subtotal of cash outflows from Due to the increase of repayment of the arrears in the 57% operating activities current period Net cash flows generated from Due to the increase of repayment of the arrears in the 159% operating activities current period Cash received from return on 214% Due to the increase of redeem of financial products investments Cash received from distribution of 60% Due to the increase of income on financial products dividends or profit Due to the investment received from targeted Proceeds from investment 100% additional shares issuance Cash repayments of borrowings 61% Due to the increase of repayment of bank loans The net cash flow generated by Due to the investment received from targeted 63% financing activities additional shares issuance 2 Progress and influence of significant events, as well as the analysis and explanation on solutions □ Applicable √ Not applicable 3 Commitments not finished and is overdue in the reporting period by actual controller, shareholders, related parties, acquirer, and other commitments parties. □ Applicable √ Not applicable There is no commitments not finished and is overdue in the reporting period by actual controller, shareholders, related parties, acquirer, and other commitments parties. 4 Forecast of operating results for Jan. 2018-June 2018 Warning of possible loss or considerable change of the accumulated net profit made during the period-start until the end of the next reporting period according to predictions as well as any explanations for these reasons: 9 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. □ Applicable √ Not applicable 5 Securities investment □ Applicable √ Not applicable There is no securities investments in the reporting period. 6 Investment in Derivatives □ Applicable √ Not applicable There is no investment in derivatives in the reporting period. 7 Particulars about researches, visits and interviews received in this reporting period □ Applicable √ Not applicable There is no researches, visits and interviews received in the reporting period. 8 Illegal Guarantee □ Applicable √ Not applicable There was no illegal guarantee during the reporting period. 9 Particulars about the non-operating occupation of funds by the controlling shareholder □ Applicable √ Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in the reporting period. 10 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. IV Financial Statements 1 Financial Statements (1) Consolidated Statement of Financial Position Prepared by: Bengang Steel Plates Co., Ltd. As at 31 March 2018 Unit:Yuan Items Ending balance Beginning balance Current assets: Cash at bank and on hand 11,093,558,097.39 17,037,713,410.49 Settlement provisions Capital lent Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 3,843,305,009.16 3,846,433,700.87 Accounts receivable 759,164,807.27 728,597,926.39 Prepayments 1,180,446,504.01 1,280,689,094.33 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Interests receivable 16,293,285.16 18,448,520.50 Dividends receivable Other receivables 296,536,545.14 290,376,985.34 Redemptory financial assets for sale Inventories 11,849,685,609.68 11,209,898,096.16 Assets classified as held for sale Non-current assets due within one year Other current assets 223,617,780.92 809,322,127.79 Total current assets 29,262,607,638.73 35,221,479,861.87 11 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Non-current assets: Loan and advances issued Available-for-sale financial assets 3,888,980.00 3,888,980.00 Held-to-maturity investment Long-term receivables Long-term equity investments 2,726,009.03 2,726,009.03 Investment properties Fixed assets 23,423,813,190.26 23,852,067,166.10 Construction in progress 2,512,650,530.63 2,391,584,410.46 Construction materials 2,880,287.12 4,558,919.60 Disposal of fixed assets Productive biological assets Oil and gas assets Intangible assets 283,074,289.92 253,884,881.48 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 195,992,526.13 200,618,461.36 Other non-current assets 1,067,334,823.12 1,067,334,823.12 Total non-current assets 27,492,360,636.21 27,776,663,651.15 Total assets 56,754,968,274.94 62,998,143,513.02 Current Liabilities: Short-term loans 20,988,248,400.00 21,999,103,900.00 Loan from central bank Absorbed deposit and interbank deposit Loan from other financial institutions Financial liabilities at fair value through profit or loss Advance from customers Notes payable 3,742,684,341.50 11,494,589,827.27 Accounts payable 3,750,475,693.36 3,897,668,513.77 Advance from customers 2,267,165,181.31 3,308,567,598.05 Financial assets sold for 12 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. repurchase Handling charges and commission payable Employee benefits payable 36,205,319.16 43,722,537.58 Current tax liabilities 23,604,657.69 87,807,128.50 Interests payable 26,252,770.25 84,139,288.02 Dividends payable Other payables 540,233,649.65 576,989,932.31 Reinsurance accounts payable Provision for insurance contract Receipt from vicariously traded securities Receipt from vicariously underwriting securities Liabilities held for sale Non-current liabilities due within 3,710,868,973.54 3,811,540,590.84 one year Other current liabilities 23,574,344.57 27,979,093.21 Total current liabilities 35,109,313,331.03 45,332,108,409.55 Non-current liabilities: Long-term loans 2,098,295,484.06 2,444,185,630.28 Bonds payable Including: Preferred stock Perpetual bond Long-term payables Long-term employee benefits payable Special accounts payable Estimated liabilities Deferred income 372,601,561.30 372,785,000.00 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 2,470,897,045.36 2,816,970,630.28 Total liabilities 37,580,210,376.39 48,149,079,039.83 Shareholders’ equity: 13 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Share capital 3,875,371,532.00 3,136,000,000.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 12,343,209,847.29 9,114,845,542.05 Less: treasury shares Other comprehensive income Special reserves 7,350,783.64 475,046.75 Surplus reserves 961,105,529.85 961,105,529.85 General risk reserve Undistributed profits 1,453,792,102.59 1,103,162,610.35 Total equity attributable to equity 18,640,829,795.37 14,315,588,729.00 holders of the parent company Non-controlling interests 533,928,103.18 533,475,744.19 Total shareholder’s equity 19,174,757,898.55 14,849,064,473.19 Total liabilities and shareholder’s equity 56,754,968,274.94 62,998,143,513.02 Legal Representative:Wang Shu Person in charge of accounting:Han Ge Accounting Dept Leader:Wang Shaoyu (2) Balance sheet of Parent Company Unit:Yuan Items Ending balance Beginning balance Current assets: Cash at bank and on hand 10,479,896,112.30 16,717,913,081.42 Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 3,575,837,787.96 3,515,361,992.96 Accounts receivable 520,075,140.22 482,181,593.45 Prepayments 1,180,446,504.01 1,280,354,579.87 Interests receivable 16,293,285.16 18,377,036.96 Dividends receivable Other receivables 398,937,446.74 376,863,448.72 Inventories 9,571,138,419.47 9,228,860,225.75 14 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Assets classified as held for sale Non-current assets due within one year Other current assets 223,617,780.92 682,211,823.73 Total current assets 25,966,242,476.78 32,302,123,782.86 Non-current assets: Available-for-sale financial assets 3,888,980.00 3,888,980.00 Held-to-maturity investment Long-term receivables Long-term equity investments 1,930,481,902.16 1,756,981,902.16 Investment properties Fixed assets 21,303,700,826.29 21,621,369,452.27 Construction in progress 2,495,900,067.44 2,383,533,130.37 Construction materials 2,455,500.80 4,134,133.28 Disposal of fixed assets Productive biological assets Oil and gas assets Intangible assets 151,255,780.92 152,082,315.24 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 95,563,986.10 100,189,921.33 Other non-current assets 1,037,735,849.00 1,037,735,849.00 Total non-current assets 27,020,982,892.71 27,059,915,683.65 Total assets 52,987,225,369.49 59,362,039,466.51 Current Liabilities: Short-term loans 19,405,839,000.00 20,499,694,500.00 Financial liabilities at fair value through profit or loss Advance from customers Notes payable 3,214,532,767.20 10,866,669,546.93 Accounts payable 3,901,242,450.32 4,184,763,509.38 Advance from customers 2,087,038,774.20 3,217,423,443.14 Employee benefits payable 35,842,167.15 42,380,713.02 Current tax liabilities 3,476,856.86 66,903,531.67 15 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Interests payable 17,450,000.00 79,074,426.27 Dividends payable Other payables 399,948,764.62 343,211,639.65 Liabilities held for sale Non-current liabilities due within 3,710,868,973.54 3,811,540,590.84 one year Other current liabilities 23,574,344.57 27,979,093.21 Total current liabilities 32,799,814,098.46 43,139,640,994.11 Non-current liabilities: Long-term loans 2,098,295,484.06 2,444,185,630.28 Bonds payable Including: Preferred stock Perpetual bond Long-term payables Long-term employee benefits payable Special accounts payable Estimated liabilities Deferred income 372,601,561.30 372,785,000.00 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 2,470,897,045.36 2,816,970,630.28 Total liabilities 35,270,711,143.82 45,956,611,624.39 Shareholders’ equity: Share capital 3,875,371,532.00 3,136,000,000.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 11,923,058,165.17 8,694,693,859.93 Less: treasury shares Other comprehensive income Special reserves 5,953,580.47 276,727.96 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed profits 951,025,418.18 613,351,724.38 Total shareholder’s equity 17,716,514,225.67 13,405,427,842.12 16 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Total liabilities and shareholder’s equity 52,987,225,369.49 59,362,039,466.51 (3) Consolidated Statement of Comprehensive Income Unit:Yuan Items Jan.-Mar.2018 Jan.-Mar.2017 1. Total operating income 11,641,518,226.15 11,132,407,692.65 Including: Operating income 11,641,518,226.15 11,132,407,692.65 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 11,292,484,306.53 10,738,188,697.63 Including: Operating cost 10,774,961,797.37 9,930,127,676.02 Interest cost Expenditure for handling charges and commission Surrender value Net expenditure for compensation Net provision for insurance contract appropriated Bonus payment for policy Reinsurance premium Taxes and surcharges 93,231,022.33 77,416,977.43 Selling and distribution 270,705,255.98 309,701,590.37 expenses General and administrative 236,415,300.35 171,564,522.91 expenses Financial expenses -82,829,069.50 249,377,930.90 Asset impairment loss Add: Gains from the change in fair value ("-" for loss) Income on investment ("-" for 3,493,150.68 2,186,117.80 loss) Including: Income from associates and joint ventures 17 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Exchange gain ("-" for loss) Assets disposal gains ("-" for loss) Other income 6,463,438.70 3 Operating profit ("-" for loss 358,990,509.00 396,405,112.82 Add: Non-operating income 1,585,742.03 9,446,503.65 Less: Non-operating expenses 2,338,387.11 4 Total profit ("-" for total loss) 360,576,251.03 403,513,229.36 Less: Income tax expenses 9,494,399.80 97,028,442.48 5 Net Profit ("-" for net loss) 351,081,851.23 306,484,786.88 Net profit from continuing operation 351,081,851.23 306,484,786.88 ("-" for loss) Net profit from discontinued operation ("-" for loss) Attributable to: Owners of parent 350,629,492.24 302,653,287.07 company Non-controlling shareholders 452,358.99 3,831,499.81 6. Other comprehensive income after tax Other comprehensive income attributable to owners of parent company after tax 1) Other comprehensive income unable to be reclassified into profit and loss afterwards 1.Change of net liabilities or net assets through remeasuring defined benefit plan 2.Share of other comprehensive income of investee not to be classified into profit or loss afterwards under equity method 2) Other comprehensive income to be reclassified into profit and loss afterwards 1.Share of other comprehensive income of investee to be classified into profit or loss afterwards under equity method 2. Gains and losses on 18 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. remeasuring available-for-sale financial assets 3.Gains and losses resulting from reclassification of held-to maturity investment to financial assets held-for sale 4.Effective portion of gains or losses from cash flow hedging 5. Gains and losses resulting from translatin g the foreign currency financial statements 6.Others Other comprehensive income attributable to non-controlling shareholders after tax 7. Total comprehensive income 351,081,851.23 306,484,786.88 Total comprehensive income 350,629,492.24 302,653,287.07 attributable to owners of parent company Total comprehensive income attributable to non-controlling 452,358.99 3,831,499.81 shareholders 8. Earnings per share: (1)Basic earnings per share 0.090 0.097 (2)Diluted earnings per share 0.090 0.097 Legal Representative:Wang Shu Person in charge of accounting:Han Ge Accounting Dept Leader:Wang Shaoyu (4) Income Statement of the Parent Company Unit:Yuan Items Jan.-Mar. 2018 Jan.-Mar. 2017 1 Operating income 11,808,077,059.64 11,398,661,706.90 Less: Operating cost 11,117,984,591.44 10,366,737,537.66 Taxes and surcharges 86,278,192.35 70,478,527.46 Selling and distribution 145,350,744.25 200,688,771.46 expenses General and administrative 224,716,557.40 160,222,229.54 19 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. expenses Financial expenses -97,141,152.03 231,289,051.43 Asset impairment loss Add: Gains from the change in fair value ("-" for loss) Income on investment ("-" for 3,493,150.68 2,186,117.80 loss) Including: Income from associates and joint ventures Assets disposal gains ("-" for loss) Other income 6,463,438.70 2 Operating profit ("-" for loss) 340,844,715.61 371,431,707.15 Add: Non-operating income 1,454,913.42 8,796,284.46 Less: Non-operating expenses 2,338,387.11 3 Total profit ("-" for total loss) 342,299,629.03 377,889,604.50 Less: Income tax expenses 4,625,935.23 87,971,810.96 4 Net Profit ("-" for net loss) 337,673,693.80 289,917,793.54 Net profit from continuing 337,673,693.80 289,917,793.54 operation ("-" for loss) Net profit from discontinued operation ("-" for loss) 5 Other comprehensive income after tax 1) Other comprehensive income unable to be reclassified into profit and loss afterwards 1.Change of net liabilities or net assets through remeasuring defined benefit plan 2.Share of other comprehensive income of investee not to be classified into profit or loss afterwards under equity method 2) Other comprehensive income to be reclassified into profit and loss afterwards 1.Share of other comprehensive income of investee to be classified into profit or loss afterwards 20 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. under equity method 2 Gains and losses on remeasuring available-for-sale financial assets 3.Gains and losses resulting from reclassification of held-to maturity investment to financial assets held-for sale 4.Effective portion of gains or losses from cash flow hedging 5. Gains and losses resulting from translati ng the foreign currency financial statements 6.Others 6 Total comprehensive income 337,673,693.80 289,917,793.54 7 Earnings per share: (1)Basic earnings per share (2)Diluted earnings per share (5) Consolidated Statement of Cash Flows Unit:Yuan Items Jan.-Mar. 2018 Jan.-Mar. 2017 1.Cash flow from operating activities: Cash received from sale of goods 7,731,797,062.14 7,100,739,711.79 or rendering of services Net increase of customers’ deposit and interbank deposit Net increase of loan from central bank Net increase of loans from other financial institutions Cash received for premium of original insurance contract Net cash received for reinsurance business Net increase of deposit and investment of the insured 21 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Net increase of Financial assets at fair value through profit or loss Cash from receiving interest, handling charge and commission Net increase of loans from other financial institutions Net increase of fund for buy-back business Tax rebate received 72,002,572.86 40,096,198.40 Other cash received relating to 60,576,344.20 69,675,649.95 operating activities Subtotal of cash inflow received from 7,864,375,979.20 7,210,511,560.14 operation activities Cash paid for goods and services 15,907,402,800.35 9,858,638,834.91 Net increase of customer’s loan and advances Net increase of deposit in central bank and interbank deposit Cash for payment of compensation for original insurance contract Cash for payment of interest, handling charge and commission Cash for payment of policy bonus Cash paid to and on behalf of 481,878,788.59 453,316,467.11 employees Cash paid for all types of taxes 322,300,081.76 296,159,456.20 Other cash paid relating to 24,302,177.31 25,129,633.16 operating activities Subtotal of cash outflow received from 16,735,883,848.01 10,633,244,391.38 operation activities Net cash flows generated from -8,871,507,868.81 -3,422,732,831.24 operating activities 2. Cash flows from investing activities: Cash received from return on 500,000,000.00 159,000,000.00 investments Cash received from distribution of 3,493,150.68 2,186,117.80 22 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. dividends or profit Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiary and other operating units Other cash paid relating to investing activities Subtotal of cash inflow received from 503,493,150.68 161,186,117.80 investing activities Cash paid for acquisition of fixed assets, intangible assets and other 367,847,024.60 486,764,678.93 long-term assets Cash paid for acquisition of investments Net increase of mortgage loan Net cash received from subsidiary and other operating unit Other cash paid relating to investing activities Subtotal of cash outflows from 367,847,024.60 486,764,678.93 investing activities The net cash flow generated by 135,646,126.08 -325,578,561.13 investment activities 3. Cash flows from financing activities: Proceeds from investment 3,965,799,988.19 Including: Proceeds from investment of non-controlling shareholders of subsidiary Proceeds from borrowings 6,576,220,000.00 6,602,518,658.09 Cash received from bond issuance Other proceeds relating to financing activities Subtotal cash inflow received from 10,542,019,988.19 6,602,518,658.09 financing activities Cash repayments of borrowings 6,452,965,440.62 3,997,546,531.91 Cash payments for distribution of 292,806,531.43 282,352,521.52 23 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. dividends, profit or interest expenses Including: Cash paid to non-controlling shareholders as dividend and profit by subsidiaries Other cash payments relating to financing activities Subtotal of cash outflows from 6,745,771,972.05 4,279,899,053.43 financing activities The net cash flow generated by 3,796,248,016.14 2,322,619,604.66 financing activities 4. Effect of foreign exchange rate -6,488,117.13 -8,665,398.73 changes on cash and cash equivalents 5. Net increase in cash and cash -4,946,101,843.72 -1,434,357,186.44 equivalents Add: Cash and cash equivalents at 12,317,576,778.93 12,273,574,488.67 the beginning of the period 6. Cash and cash equivalents at the 7,371,474,935.21 10,839,217,302.23 ending of the period (6) Cash Flow Statement of Parent Company Unit:Yuan Items Jan.-Mar. 2018 Jan.-Mar. 2017 1.Cash flow from operating activities: Cash received from sale of goods 7,332,137,869.58 7,138,918,917.92 or rendering of services Tax rebate received 135,442.49 4,990,848.26 Other cash received relating to 42,405,069.68 50,953,435.38 operating activities Subtotal of cash inflow received from 7,374,678,381.75 7,194,863,201.56 operation activities Cash paid for goods and services 15,657,723,198.78 9,605,833,537.74 Cash paid to and on behalf of 456,027,325.34 429,807,971.99 employees Cash paid for all types of taxes 289,677,174.70 271,085,915.47 Other cash paid relating to 20,458,086.55 20,753,329.17 operating activities Subtotal of cash outflow received from 16,423,885,785.37 10,327,480,754.37 24 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. operation activities Net cash flows generated from -9,049,207,403.62 -3,132,617,552.81 operating activities 2. Cash flows from investing activities: Cash received from return on 500,000,000.00 159,000,000.00 investments Cash received from distribution of 3,493,150.68 2,186,117.80 dividends or profit Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiary and other operating units Other cash paid relating to investing activities Subtotal of cash inflow received from 503,493,150.68 161,186,117.80 investing activities Cash paid for acquisition of fixed assets, intangible assets and other 366,691,846.42 474,766,092.93 long-term assets Cash paid for acquisition of 173,500,000.00 investments Net cash received from subsidiary and other operating unit Other cash paid relating to investing activities Subtotal of cash outflows from 540,191,846.42 474,766,092.93 investing activities The net cash flow generated by -36,698,695.74 -313,579,975.13 investment activities 3. Cash flows from financing activities: Proceeds from investment 3,965,799,988.19 Proceeds from borrowings 6,053,220,000.00 5,978,931,200.00 Cash received from bond issuance Other proceeds relating to financing activities 25 Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Subtotal cash inflow received from 10,019,019,988.19 5,978,931,200.00 financing activities Cash repayments of borrowings 6,012,965,440.62 3,743,326,531.91 Cash payments for distribution of 279,903,047.33 267,274,159.52 dividends, profit or interest expenses Other cash payments relating to financing activities Subtotal of cash outflows from 6,292,868,487.95 4,010,600,691.43 financing activities The net cash flow generated by 3,726,151,500.24 1,968,330,508.57 financing activities 4. Effect of foreign exchange rate -6,484,800.97 -8,663,163.83 changes on cash and cash equivalents 5. Net increase in cash and cash -5,366,239,400.09 -1,486,530,183.20 equivalents Add: Cash and cash equivalents at 12,152,285,550.21 11,876,536,613.66 the beginning of the period 6. Cash and cash equivalents at the 6,786,046,150.12 10,390,006,430.46 ending of the period 2 Auditors’ report Whether First quarter report has been audited by a CPAs firm. □ Yes √ No The First quarter report has not been audited by a CPAs firm. 26